A draft economic analysis released today by the U.S. Fish and Wildlife Service for public review and comment indicates the proposed critical habitat designation for the endangered Kauai cave wolf spider and Kauai cave amphipod could have substantial economic impacts on planned hotel and resort/residential development in the Koloa and Poipu area of the of Kauai. A range of total costs from $742 million to $1.9 billion over an 18-year period is outlined in the draft report, which is required under the Endangered Species Act.
"Although plant critical habitat is concentrated within Kauais conservation district on mostly undevelopable lands, these cave invertebrates are found only in the Koloa lava flows, on flat and developable lands within agricultural and urban planning districts," said Paul Henson, field supervisor for the Fish and Wildlife Service=s Pacific Islands Fish and Wildlife Office. "The potential economic impacts are obviously much more significant for these species".
Most of the proposed critical habitat units contain areas planned for residential, resort, commercial, industrial, and/or golf course development. In addition, crop farming, a limestone quarry, and rights-of-way for roads and utilities are planned for the area. Existing county land use plans identify the Koloa-Poipu area as a primary area for expanding Kauais visitor industry.
The Service anticipates some slight changes to the number of acres and units based on new information received since the proposed rule was published in the Federal Register on March 27 that shows some of the areas originally proposed do not contain the biological features needed for critical habitat. As modified, critical habitat would consist of five units covering 3,955 acres in the undeveloped area between Koloa and Poipu. Almost all of the land is privately owned, with only 124 acres owned by the state or local government.
Under the Endangered Species Act, the Fish and Wildlife Service may exclude areas from a critical habitat designation if the benefits of excluding them are greater than the benefits of including them, unless the exclusion would result in the extinction of the protected species.
The draft report outlines direct costs associated with requirements to consult with the Fish and Wildlife Service regarding proposed projects that require a Federal permit, A copy of the proposed rule to designate critical habitat on Lanai is available funding, or other authorization; indirect costs beyond the Services ability to control (in this case, primarily associated with lost economic and population growth attributable to resort and residential development); and benefits of critical habitat designation.
The most significant direct costs are attributed to project modifications for resort, residence, roads, and quarry development. Total direct costs range from an estimated $56 million to $62 million. Indirect costs were estimated to range from $546 million to $1.5 billion over the 18-year period. This time frame was used to coincide with the 20-year Kauai General Plan, which was updated in 2000.
Potential economic benefits of the proposed critical habitat designation include those associated with preserving native species and open space, reducing soil and chemical run-offs, reducing traffic congestion, and enhancing ecotourism opportunities. Because these economic benefits are difficult to quantify with existing information, no dollar values are assigned to these benefits within the draft report.
The draft economic analysis was developed by Industrial Economics, Inc., an economic consulting firm in Cambridge, Massachusetts, with assistance from Decision Analysts Hawaii, Inc., and Research Solutions, LLC, both Hawaii-based economic consulting companies.
A notice of availability of the draft economic analysis was published in the Federal Register on November 15. The report and the proposed rule to designate critical habitat for the Kauai cave wolf spider and Kauai cave amphipod are available at http://pacificislands.fws.gov">. Copies may also be obtained by calling the Fish and Wildlife Service=s Honolulu office at 808/541-3441.
Comments regarding the draft economic analysis and the proposed rule may be submitted until December 16 to the Field Supervisor, U.S. Fish and Wildlife Service, Pacific Islands Office, 300 Ala Moana Boulevard, Room 3-122, Box 50088, Honolulu, Hawaii, 96850; or via facsimile at 808/541-3470. People who already commented on the proposed designations do not need to do so again. Their comments are part of the public record and will be fully considered in the final decision.
The U.S. Fish and Wildlife Service is the principal Federal agency responsible for conserving, protecting and enhancing fish, wildlife and plants and their habitats for the continuing benefit of the American people. The Service manages the 95-million-acre National Wildlife Refuge System which encompasses 540 national wildlife refuges, thousands of small wetlands and other special management areas. It also operates 70 national fish hatcheries, 64 fishery resource offices and 78 ecological services field stations. The agency enforces Federal wildlife laws, administers the Endangered Species Act, manages migratory bird populations, restores nationally significant fisheries, conserves and restores wildlife habitat such as wetlands, and helps foreign governments with their conservation efforts. It also oversees the Federal Aid program that distributes hundreds of millions of dollars in excise taxes on fishing and hunting equipment to state fish and wildlife agencies.


